• The interest rates for household’s mortgages rose and contributed with 2.7 percentage points to the annual inflation rate according to CPI.
  Electricity prices decreased in September and were 45.3 percent lower compared to the corresponding period previous year.
• Prices on clothing increased by 4.9 percent, which is normal for the season.
• Prices within recreation and culture continue to rise and is the main group that contribute the most to the inflation rate in September.
• The annual inflation rate according to CPIF excluding energy decreased from 7.2 percent in August to 6.9 percent in September

Electricity prices fell

The CPI increased by 0.5 percent from August to September. In the corresponding period a year ago, prices increased by 1.4 percent.

The monthly change in September was affected by increased prices on clothing, which is normal for the season. Prices also increased for interest expenses of household’s mortgages, furniture, fuel as well as recreation and culture.

The price increases were offset by decreased prices on electricity and international flights with 5.5 and 9.6 percent respectively.

The table below shows one-month percent changes and contributions to CPI based on the goods and services that had the greatest impact on CPI in September 2023. The results are presented by COICOP category. COICOP refers to the United Nations classification of household consumption expenditure.

Inflation rate lower in September

The inflation rate according to CPI, that is, the change in CPI from the same month of the previous year, was 6.5 percent in September 2023. This is a decrease from August when the inflation rate was 7.5 percent.

Electricity prices have decreased by 45.3 percent since September 2022, which resulted in a negative contribution of 2.4 percentage points to the inflation rate.

Positive contributions came from higher interest expenses on household’s mortgages as well as recreation and culture which contributed with 2.7 and 1.4 percentage points respectively. Prices on food and non-alcoholic beverages have also increased and the main contribution came from rising prices within sugar, jam, honey, chocolate, confectionery and ice cream.

Additional price increases came from a wide range of goods and services. Restaurant and hotel visits increased by 7.7 percent, transport rose by 5.9 percent and miscellaneous goods and services rose by 6.3 percent. The inflation rate was also affected by increased fees on actual rentals for housing, rising prices on clothing and furnishings and household goods.

The inflation rate according to CPIF, which unlike CPI is not affected by changes in mortgage interest rates, was 4.0 percent in September. The corresponding rate for August was 4.7 percent.

The inflation rate calculated excluding energy products (CPIF-XE) was 6.9 percent in September, which is a decrease compared to August when it was 7.2 percent.

Different measures of inflation

Statistics Sweden calculates different inflation measures for different purposes. The CPIF is the Riksbank’s target variable, while CPI is the measure used for purposes of compensation. The CPIF includes the same goods and services as CPI. The difference between the CPI and the CPIF is that the latter measure holds interest rates for household’s mortgages constant. As a consequence thereof, the effect of changed interest rates for household’s mortgages is only captured by the CPI and not the CPIF.

Additional to the CPI and the CPIF, the HICP is also calculated. The HICP is a harmonized measure of inflation used within the EU cooperation. Another index that is calculated each month is CPIF-XE (the CPIF excluding energy products) which is often used as a measure of underlying inflation.